By Marissa Carruthers for B2B Cambodia
A rise in foreigners relocating to Cambodia continues to drive the serviced apartment market, new figures reveal.
A study by property experts CBRE showed that in the first quarter of 2013, demand for serviced apartments grew alongside the country’s strong commercial and economic growth.
It also found the market remains heavily driven by the number of foreign nationals living in Phnom Penh, with new high-quality serviced apartments being snapped up in record times.
Phnom Penh currently has more than 15 fully serviced Grade A apartment buildings offering a wide range of high quality accommodation, facilities and amenities.
And, according to Owen Williams, CBRE surveyor, one and two bedroom apartments continue to dominate the lion’s share of the total supply over that of larger suites, with one and two bedrooms providing 76 per cent of the total supply.
The completion of the Bellevue and Street 334 developments, coupled with the introduction of Chateau D’Meliya later this year, will also provide a wider choice and variety of accommodation; offering further studio and three bed units.
In addition, there are 18 apartment developments under construction in sought-after spots across the capital that will continue to feed the market.
Occupancy rates also continue to prosper with Grade A serviced apartments continuing to dominate the market, achieving averages of 99 per cent. Grade B accommodation is also up year-on-year, hitting an average of 90 per cent occupancy rates.
Williams adds that expats continuing to flock to Phnom Penh are boosting the need for serviced apartments, meaning demand will remain high and rent rates stable.
Three-bedroom properties are scarce in the city, with a total of 30 being brought onto the market between January and April. A total of 25 per cent of those have been rented.
Current rents range from $8/sq.m up to $42/sq.m. The average price across the market is $19/sq.m.
Information provided by CBRE. For more details, visit www.cbre.com.kh